If you’re looking for Illinois no down payment home loans for nurses, we can help! There are lots of no and low down payment mortgages available to nurses in the state of Illinois if you know what you’re looking for, as well as down payment assistance programs offered by the state that can help make home loans with regular down payment a lot cheaper.
Saving up for the down payment is the hardest part of buying a home for many people. Making monthly payments usually isn’t too bad if the loan has a fixed interest rate and you know that you have a steady income, but saving up for one massive payment can be a little harder unless you’re making a significant amount of money. Plus, first time homebuyers, newlyweds, and recent med school graduates who want to buy a home may not have had the time to save up for a down payment even if they have the means.
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This is why Illinois no down payment home loans for nurses are so helpful and why and Illinois nurse should consider the programs listed below.
Illinois No Down Payment Home Loans for Nurses
The sad truth is that it’s hard to find an Illinois no down payment home loan for nurses or any other type of home buyer. The down payment is how mortgage brokers and moneylenders deal with the risk of giving someone a lot of money to buy a home and hoping that they’ll pay it back over the next thirty years. It insures that they’ll get at least some of their money back. A no down payment home loan is a huge risk that many Illinois lenders aren’t willing to take.
Fortunately, there are Illinois home loans for nurses that don’t cost very much up front, and many of these low down payment home loans can be turned into no down payment home loans as we’ll describe in the next two sections.
If you’re looking for a program available anywhere in the state of Illinois that offers no down payment home loans for nurses, then your best bet is the VA loan program. VA loans have a lot of great benefits – expanded income requirements, low-to-no credit requirements, no expensive private mortgage insurance, and (of course) no down payment required. If you’re eligible for a VA loan, it will save you thousands of dollars over the course of your mortgage’s payment period.
However, it should be noted that VA loans are only available to veterans and members of the armed forces who have served a certain amount of time in their respective branch. You will have to apply for a VA Certificate of Eligibility in order to get accepted – a topic which you can learn more about by clicking here.
Illinois LOW down payment home loans for nurses
Although Illinois no down payment home loans for nurses are perhaps not as common as we would like, there are still many programs that can make that initial payment a lot cheaper. And these LOW down payment loans can often become NO down payment loans in one of two ways.
The first way is to apply for down payment assistance, which we cover in the next section of this article.
The second way is to find a lender who is willing to manually underwrite your loan into a new Illinois nurse home loan with no down payment. Lenders will usually do this only when you have demonstrated beyond all doubt that you will be able to make the monthly loan payments but can’t afford the additional payment up front. However, they may take extenuating circumstances into account, so if you think your Illinois nurse experience has cost you the ability to make a down payment you can speak to a lender about getting a loan underwritten.
In the meantime, here are our top 2 low down payment home loans for nurses in Illinois:
FHA home loans for Illinois nurses
FHA loans are mortgages for nurses in Illinois that have been insured by the Federal Housing Administration, a branch of the federal government. Because the FHA (which is backed by the power of the US Treasury) agrees to guarantee a certain percentage of these loans in the event that the buyer can’t make their payments, these loans carry much less risk for the lender. The lender, in turn, is willing to accept applications for FHA loans that would be rejected outright for a conventional mortgage because of the decreased risk.
FHA loans have three big advantages. The first is lower credit requirements. Usually a credit score of 580 is required for an FHA loan, which is much lower than the 660-700 minimum requirement of most conventional home loans. And in some places, you can get an FHA loan with credit as low as 500 if you are willing to pay a slightly higher down payment or if you can provide alternative credit (like proof that you regularly pay your utility bills.)
The second advantage of an FHA home loan is a lower interest rate. Although any home buyer can apply for an FHA loan, they’re specifically designed to encourage first-time buyers to enter the market, so they’re designed to be very affordable.
And the third advantage, as you’ve no doubt already guessed, is that FHA loans have the lowest down payments of any widely-available home loan program. If your credit score is 580 or higher, you only have to make a down payment of 3.5 percent of the total value of the home in almost all cases. And the highest down payments that come with FHA loans are only as high as 10 percent, which is half of the 20 percent standard down payment on a conventional mortgage. It doesn’t get much cheaper than that!
USDA home loans for nurses in Illinois
A USDA loan, also known as a Rural Development Loan, is a loan paid out by the US Department of Agriculture in order to encourage people to move into more rural areas of the country. Obviously, this option is completely unavailable for anyone in the Chicago area. But much of the rest of Illinois may apply, as the USDA estimates that 97% of the land in America is eligible for these types of loans.
USDA loans have higher income and credit requirements than FHA loans, so they may not be as accessible for nurses in Illinois. However, they do have longer lease periods (which means lower individual payments), comparable interest rates, and no down payment at all in many cases (with lower down payments in others.) So if you’re eligible for these home loans for Illinois nurses, they’re definitely worth serious consideration.
Down payment assistance for Illinois nurses
Down payment assistance programs are programs in which either the lender or a third party agrees to pay for a portion of your down payment, either by nullifying it completely or by giving you a deferred zero interest loan that you don’t have to pay off until after you’re finished paying off your mortgage.
Obviously, these programs can often be used to make a high down payment into something much cheaper, and they can also be used to turn low down payment loans into Illinois no down payment home loans for nurses.
IHDA 1st Home Illinois Loan
The Illinois Housing Development Authority, or IHDA, offers several different types of home loans, most of which have low down payments only at the cost of high credit requirements that will make them unaffordable for many of our readers.
However, they also offer an Illinois nurse home loan called the “1stHomeIllinois Loan”, which is offered to first-time homebuyers, buyers who haven’t owned a home in the last three years, and veterans. These loans take the form of a 30-year fixed-rate mortgage (similar to most FHA loans, though a little more expensive) with a $7,500 down payment assistance grant. Unlike many down payment assistance programs, this $7,500 can be used to pay off the entirety of the down payment and does not require a certain percentage to be paid by the home buyer.
Good Neighbor Next Door
Law enforcement officers, teachers, firefighters, and nurses can apply for the federal department of Housing and Urban Development’s Good Neighbor Next Door Program, which offers a substantial discount of 50 percent of the value of a home. As long as you commit to living in that home as your primary residence for at least 36 months (3 complete years), you do not have to pay this amount back in any form. This money can be used to make most down payments completely free and makes houses much more affordable in general, provided you meet all the eligibility requirements in terms of occupation, income, location, and credit.
Conclusion
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Now that you know about all of the great resources offered by the state, local, and federal governments, you should have everything you need to find Illinois no down payment home loans for nurses. At Home Loans For All we’re incredibly grateful for our medical professionals and all that they do, and we want to do everything we can to help you find the home of your dreams at a price that’s easy to afford.
